Iron Brother China helping Pakistan to enhance cotton production: PM’s aide

Gwadar Pro

Faisalabad: Iron Brother China is helping Pakistan to enhance the cotton production, a senior aide of Prime Minister Imran Khan said.

Abdul Razak Dawood, Advisor to Prime Minister on Commerce, Textile, Industries, Production and Investment, underlined the importance of cotton which was raw material for entire textile chain.

“We have to take proactive measures to enhance cotton production. China is helping us in this regard with the technology. The second phase of the CPEC (China-Pakistan Economic Corridor) has a special focus on agriculture,” he said.

Addressing a meeting of All Pakistan Bed-sheets & Upholstery Manufacturers Association (APBUMA), Dawood mentioned different options to increase cotton yield but added that well-considered policies should be framed to avoid any backlash from any sector.

He said that most of duties on raw material had already been withdrawn while steps were underway to withdraw any remaining duties or taxes to ensure adequate supply of polyester in the domestic market.

The Advisor said that Small and Medium Enterprises (SME) sector was contributing 95 percent share to the national economy and the government was fully cognizant of their importance and trying to resolve their issues on top priority basis.

He said the economy had been stabilized and now a new target for exports would be fixed after Eidul Azha – to be celebrated on July 21 – during a meeting of stakeholders with Prime Minister Imran Khan.

He said the government was already providing facilities to SME sector. He said that most of the raw material consume by the SME sector had been zero-rated. The remaining taxes and duties would also be withdrawn so that SME sector could fully exploit its potential and give a quantum jump to national exports, he said.

About Duty Drawback of Local Taxes and Levies (DLTL), Dawood said the finance ministry had earmarked Rs 20 billion, out of which Rs 8 billion had already been disbursed among the exporters.

The Advisor urged the APBUMA members to explore new markets for exports and said that they should come up with tangible proposals during their meeting with prime minister immediately after Eid.

He was also appreciative of the role of APBUMA in organizing SME sector and said that no doubt it was one of the biggest elected trade bodies of SME sector which was contributing in a big way in national exports.

Dawood stressed the need for long term policy for the substantial growth of the economy and exports. He said that exporters must be acknowledged for their contribution in stabilizing national economy but he was surprised that number of exporters had declined whereas exports were growing substantially.

He said that there were three main factors for setting up new industry including acquiring land and getting connection of electricity and gas. He said that Pakistan had great potential for the export of salt and marble.

Earlier, APBUMA Vice Chairman Engineer Bilal Jameel appreciated the government efforts in facilitating export sector and said that the role of SME sector could not be ignored. He said that major issue confronted by SME sector was high rate of the General Sales Tax (GST) which was eroding the liquidity.

He said the government should consider “no tax no return policy” so that SME could work in a hassle free environment without any problem of liquidity crunch.